4 ms·
> Market capitalization is Market Price x Circulating Supply. It was always very strange to me that this is the case, even for more respectable financial instr
by prottog 4y ago
> Market capitalization is Market Price x Circulating Supply.
It was always very strange to me that this is the case, even for more respectable financial instruments like stocks. I get that it's an easily-calculated number, and maybe that's why it's so popular; but even for the world's most liquid instruments, like shares of AAPL, for example, it's an imaginary number, since nobody can buy or sell all of AAPL for that total amount.
At the very least, I would like to see some sort of liquidity-adjusted market cap.